Greece promises reforms in bid for debt relief

The Greek government submitted on Wednesday its formal request for a new aid package in an attempt to avoid exiting the eurozone.

Greece asked for a three-year programme, from the European Stability Mechanism (ESM). In return, Greece would commit to a comprehensive set of reforms and measures to be implemented in the areas of fiscal sustainability, financial stability, and long-term economic growth.

The total worth of the package has been estimated to be over 51 billion euro for the next three years.

Finance Minister Euclid Tsakalotos said in a letter to ESM that “tax reform related measures” and “pension related measures” would be implemented immediately. Tsakalotos, however, also underlined that “Greece welcomes an opportunity to explore potential measures to be taken so that its official sector related debt becomes both sustainable and viable over the long term”.

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